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Nam Cheong doubles quarterly profit

Nam Cheong doubles quarterly profit
Malaysian offshore vessels builder Nam Cheong has doubled its net profit in the first quarter against the backdrop of an active offshore marine industry.

Net profit in the quarter ended 31 March 2014 surged 99% year-on-year to MYR71.09m ($22.06m).

Revenue climbed 74% to MYR407.25m with strong contribution from the company’s core shipbuilding segment, which saw an increase in the number of vessels delivered over the quarter.

A significant portion of the increase in shipbuilding revenue was attributed to the progressive recognition of revenue derived from the sale of platform supply vessels (PSVs), which contributed MYR229.3m or 60% of the group’s total shipbuilding revenue in the first quarter.

“We are in the throes of a booming offshore marine upcycle, as evident by our win of seven vessels worth over $110m to-date. Buoyed by strong order wins, we have a healthy orderbook of approximately MYR1.4bn through till 2016,” said Tiong Su Kouk, executive chairman of Nam Cheong.

The group’s vessel chartering segment saw a climb of 274% to MYR24.1m from MYR6.4m over the same period, following the expansion of its chartering fleet since the first quarter of 2013.